Creditors reject Greek social security reform plans

The second day of talks between the Greek government and the country’s creditors as part of the first bailout program review which focused on social security reform ended without much agreement.

The top officials representing Greece’s quadriga of creditors reportedly turned down the proposal of Greek labour minister Giorgos Katrougalos to increase social security contributions.

After a three-hour meeting with the quadriga, in which finance minister Euclid Tsakalotos and economy minister Giorgos Stathakis took part too, creditors rejected the plan to increase contributions by 1.5 per cent, which means the government must find 500 million euros from a different source or by cutting pensions.

Labour ministry sources said the rejection was “expected” and that the negotiation was “tough but in a productive climate”. Talks on social security reform will continue on Wednesday.

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